Job 139 39,200 3,400 103,200 25,500 Job 140 Total direct labor Indirect labor Total labor cost $ 128,700 d. Applied overhead to Jobs 136, 138, and 139. e. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory. f. Sold Jobs 136 and 138 on credit at a total price of $545,000. g. Recorded the cost of goods sold for Jobs 136 and 138. h. Incurred the following actual other overhead costs during the month. Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable $ 70,000 37,500 12,000 36,500 i. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. Required: 1. Prepare a job cost sheet for each job worked on during the month. Job Number 136 Job Number 137 Job Number 138 Job Number 139 Job Number 140 Materials Labor Overhead Total cost $ 2$ 2$ $ 2$
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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[The following information applies to the questions displayed below.]
Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's
production activities during May follows.
a. Purchased raw materials on credit, $220,000.
b. Materials requisitions record use of the following materials for the month.
$ 48,500
33,000
19,800
23,200
7,000
Job 136
Job 137
Job 138
Job 139
Job 140
Total direct materials
131,500
20,000
$ 151,500
Indirect materials
Total materials requisitions
c. Time tickets record use of the following labor for the month. These wages were paid in cash.
$ 12,200
10,700
37,700
39,200
3,400
103,200
Job 136
Job 137
Job 138
Job 139
Job 140
Total direct labor
25,500
$ 128,700
Indirect labor
Total labor cost
Annlia urhand t
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